What is the most likely response by rivals when an oligopolist cuts its price to increase its sales?

Question

Quizplus · Accepted Answer

If an oligopolist cuts its price to increase its sales, it is likely that rivals will cut their prices as well to remain competitive and protect their market share. This is because oligopolies comprise of a small number of firms that dominate the market, and their actions have a significant impact on the overall market conditions. If the rivals do not respond to the price cut, they risk losing customers to the oligopolist and a drop in their market share. Therefore, cutting their prices is the most likely response by rivals in an oligopoly.

What Is the Most Likely Response by Rivals When an Oligopolist